Empire Energy on track for pilot well after successful capital raise

A key Beetaloo gas player has taken another step towards selling its first gas next year. Read what happened.

Beetaloo developer Empire Energy has pocketed $46.8m in a capital raise which will allow drilling on a new test well.

The key Beetaloo Sub-Basin developer released details of the capital raise via the ASX on Wednesday.

Described by Empire as a “strongly supported two-tranche placement”, two United States investors heavily backed the project.

Bryan Sheffield, a longtime investor in Empire and Liberty Energy each invested $7.7m in the placement.

Additionally, Daly Waters, a subsidiary of a US-based private equity firm founded by Mr Sheffield, and Liberty Energy have each independently acquired a 2.25 per cent royalty interest in its EP187 gas asset, which raised an additional $7.7m.

Empire Energy chief executive Alex Underwood NT News 2023

Empire managing director Alex Underwood said Empire was now funded to drill a 3km fracture stimulated horizontal pilot development well in EP187, as well as further progressing engineering and preparation for installation of Carpentaria Pilot Project surface facilities.

“The Empire team is delighted to have received the support of key US strategic investors in the Beetaloo Basin, alongside investments from new and existing institutional and sophisticated investors under the placement,” Mr Underwood said.

“Bryan Sheffield and his team have an outstanding track record of value creation in the US shale sector, and they have made significant investments across the Beetaloo Basin. The strategic alignment being created through Bryan’s further investments announced today will be of material value to Empire’s shareholders.

“Liberty Energy is one of the largest providers of hydraulic fracture stimulation services in the US shale market and they will soon be sending a large frack spread to Australia to service the nascent Beetaloo Basin.

“Liberty also offers industry leading sub-surface engineering services to help their

customers ‘spiral up’ from data to value. Working with Liberty will facilitate improved well

productivity and cost efficiency as we move from the exploration phase into the production phase.

“The Beetaloo Basin is rapidly approaching a key inflection point which I believe will create

substantial value for shareholders. We are now well funded to drill, stimulate and flow test our first pilot development well and to progress our field development plans as we aim to commence gas sales in 2025 into the undersupplied Northern Territory market.”

Chief Minister Eva Lawler, who has repeatedly stated her support for Territory onshore gas since winning office in December, welcomed the announcement.

“Today’s announcement by Empire is fantastic news for jobs, fantastic news for our economy and fantastic news for the future of the Territory,” she said.

“The Northern Territory will be at the forefront of natural gas production, and we will be the jurisdiction to deliver cheaper, cleaner and more reliable energy to the rest of Australia.”